BILL NUMBER: AB 803	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 13, 2009

INTRODUCED BY   Assembly Member Duvall

                        FEBRUARY 26, 2009

    An act to amend Section 22830 of the Government Code,
relating to the Public Employees' Health Care Act.   An
act to add Section 22840.5 to the Government Code, relating to state
employee health care coverage. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 803, as amended, Duvall.  The Public Employees' Health
Care Act.   Health care coverage: state employees and
legislative employees: cash payments. 
    The Public Employees' Health Care Act allows an employee or
annuitant,  as defined,  under eligibility rules as
prescribed by State Personnel Board regulations, to enroll in an
approved health benefit plan approved or maintained by the board
either as an individual or for self and family. 
   This bill, operative July 1, 2010, would require the state, if it
provides an employee of the state or an employee of the Legislature
with the option to elect coverage in a health benefit plan, to also
provide that employee with the option of receiving a cash payment in
lieu of that coverage. The bill would require the amount of the cash
payment that may be provided to an employee to be calculated by
multiplying the average dollar value of the health benefit premium
that the employee could have received had he or she elected coverage
in a health benefit plan by 67%.  
   This bill would make a technical, nonsubstantive change to that
provision. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares the
following:  
   (a) Obtaining and maintaining quality health care coverage is of
great importance to all Californians.  
   (b) One type of health care coverage does not fit all, and the
diverse population of Californians, including those working for the
state or for the Legislature, should have the freedom to choose the
coverage that works best for them, whether it is secured through the
state or the private market.  
   (c) While in the past, Americans tended to hold their jobs for
decades, changing jobs and employers infrequently throughout the
course of their careers, contemporary times have seen a great
increase in the transient nature of employment, with many people
holding 10 or more different jobs throughout their careers. 

   (d) Many employers offer health care coverage, but unfortunately
that benefit is tied to the workplace, so if employees get another
job, they lose that coverage. 
   (e) If an employee develops a serious health condition during a
given period of employment, upon leaving that job, that employee may
be in the unfortunate position of being unable to secure coverage on
the private market.  
   (f) Because of the danger of being left without health care
coverage, Californians may stay in jobs for the sole purpose of
retaining health insurance coverage.  
   (g) The Legislature supports the free will and mobility of
California's workforce and encourages them to pursue satisfying jobs
that fulfill their potential, without concern for their ability to
obtain and maintain health care coverage.  
   (h) It is, therefore, the intent of the Legislature to ensure that
state employees and legislative employees are provided the option of
receiving cash in lieu of receiving health care coverage from the
state and to require that the cash that those employees may choose to
receive more closely approximates the cost of obtaining health
insurance on the private market. This will increase the flexibility
and adaptability of the employment benefits provided to state
employees and legislative employees and will save the state money by
reducing actual and administrative costs. 
   SEC. 2.    Section 22840.5 is added to the  
Government Code   , to read:  
   22840.5.  (a) Notwithstanding any other provision of law, and upon
appropriation of the necessary funds by the Legislature, if the
state provides an employee of the state or an employee of the
Legislature with the option to elect coverage in a health benefit
plan, the state shall also provide that employee with the option of
receiving a cash payment in lieu of that coverage, as provided in
subdivision (b).
   (b) The amount of the cash payment to be provided to an employee
under subdivision (a) shall be calculated by multiplying the average
dollar value of the health benefit premium that the employee could
have received had he or she elected coverage in a health benefit plan
by 67 percent. 
   SEC. 3.    The provisions of this act shall become
operative July 1, 2010.  
  SECTION 1.    Section 22830 of the Government Code
is amended to read:
   22830.  (a) An employee or annuitant, under eligibility rules as
prescribed by board regulations, may enroll in any health benefit
plan approved or maintained by the board either as an individual or
for self and family.
   (b) Enrollment shall serve as authorization of the deduction of
the contributions required under this part from the salary of an
employee or allowance of an annuitant.